Polish contractor Budimex Group has said that despite high sales volumes reported in the construction segment in the first quarter of 2015, sales in the quarter showed only a slight increase of PLN12.4 million (€3.04 million) compared to the sales volume in the same period last year.

However, it said it ended the first quarter achieving good results in the construction segment with high sales volume and an increase in productivity at each level, plus a good cash position and high dynamics in the pre-sales of flats.

It added that the group’s results in this period were significantly affected by the current stage of the development projects. It said almost all development projects were at the construction stage, and the real estate development segment started about three to five months after completion of construction works. “Significantly” lower volume of sales was seen, therefore, in the real estate development segment.

Budimex said, though, that it expected to deliver a similar number of flats to customers in 2015 as in 2014.

Favourable weather conditions and over 25% increase in the sales volume of commercial buildings contributed to reaching almost a record sales volume in the construction segment in the first quarter of 2015, it said.

The sales volume in this segment amounted to PLN826.5 million (€202.80 million) and it was PLN131 million (€32.15 million) higher than the sales volume reported in the first quarter of 2014.

Budimex said that in the first quarter of 2015, the construction segment generated better results at each level of activity compared to the corresponding period last year. The operating profit was higher by 36.5%, and taxable profit by 42.7%.

The value of the Budimex Group’s order book stood at PLN6.4 billion (€1.57 billion) as at the end of March 2015 – almost PLN300 million (€73.62 million) more than at the end of 2014.

Budimex said that in the subsequent quarters of 2015, it would like to maintain the high bidding efficiency recorded in 2014. However, the first quarter of 2015 showed that this may prove to be a difficult task, it added.

The company said, “We were observing more aggressive bidding on the part of our competitors. We aim at further strengthening our position in the road construction segment, but definitely not at any cost. Our priority is to build a profitable order book.”

It said that in 2015, the group would focus on pursuing the selected development path, including strengthening its position on the road construction market, winning a contract in the gas unit segment, procuring further power contracts, if possible, and purchasing land intended for new development investments.

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